Gold Between The Fed Rock and a Hardline Putin

The price of spot gold edged towards a two-month low on Friday morning as analysts weighed up the many factors that have been causing the commodity to trade in a tight range in recent months.
Gold slipped to $1,279 per ounce in morning trade. It had been on a five-day losing streak and was headed for its worst week in five. That trend had turned around by midday London time with the price moving higher as tensions re-emerged in eastern Ukraine. But this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term.
“We think in the next few months we’ll get some more downward pressure on gold,” Matthew Turner, a precious metals analyst at Macquarie Securities told CNBC Friday.

John Meyer, a mining analyst at brokerage SP Angel, agreed and believes that the weakness will persist for gold. He expects the commodity to be range-bound for the rest of 2014. “Yes gold is heading south for now,” he told CNBC Friday.
In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza